Demand and supply

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  • Created by: izzy
  • Created on: 09-06-13 15:35
  • A competitive market contains a large number of firms producing similar goods or services.
  • New firms can easily enter a competitive market, and incumbent firms can easily leave.
  • The price mechanism allocates scarce resources between competing uses in a competitive market.
  • In a competitive market, a good's price is determined by supply and demand.
  • When planned demand equals planned supply, the market is in equilibrium.
  • Market disequilibrium means that

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